Negative Rates Are Benefiting Other Countries, But Fed Vice Chair Says The US Won’t Use Them
Federal Reserve vice chairman Stanley Fischer says negative rates look like they’re working to the benefit of other countries, but they still aren’t on the table for use in the US.
Fischer emphasized the Fed isn’t planning to move in that direction, but said that central bankers use of negative rates in other countries is perceived as a successful policy, Bloomberg reports. Yet when it comes to the US, Fischer said Fed rate increases are dependent on signs of a healthy economy backed by sufficient data.
The data he’s referring to is the 2% inflation mark and strong employment growth, and while Fischer says the US is near full employment, pessimism surrounding the rate of expansion is holding the economy back. [Bloomberg]